Scatec, a renewable energy solutions provider, announced financial closure for the Sidi Bouzid and Tozeur solar projects, which have a total capacity of 120 MW in Tunisia (each 60 MW). According to the signed partnership agreement, Scatec will jointly develop and own the projects with Aeolus, a joint venture of Japanese conglomerate Toyota Tsusho Corporation.
The total project cost (capex) is estimated at €79 million (~$86.20 million) and will be financed by non-recourse project finance debt, concessional loans, and equity from the partners.
Scatec will soon commence construction of the projects and provide engineering, procurement & construction, asset management, and operations & maintenance services with an EPC scope of approximately 84% of capex.
The European Bank of Reconstruction and Development (EBRD) and Société de Promotion et de Participation pour la Coopération Economique (Proparco) are the senior lenders for the projects, with the Clean Technology Fund and the Global Environment Facility providing concessional financing.
Under the partnership agreement, Aeolus will own 49% of stakes in the projects, with Scatec holding the remaining 51%.
“We are excited to welcome Toyota – Aeolus on board to develop our projects in Tunisia. We want to thank Toyota Tsusho Group’s management for their support and trust in Scatec, and we are looking forward to embarking on the construction phase of the two projects. The partnership highlights our track record in structuring projects, securing strong partners, and obtaining the necessary financing to drive profitable renewable energy projects forward. We want to thank our key lending partners and the Government of Tunisia and Japan for their support and drive of the green transition in the region,” says Scatec CEO Terje Pilskog.
According to Mercom’s 1H and Q2 2024 Solar Funding and M&A report, large-scale project funding in 1H 2024 came to $19.9 billion in 117 deals compared to $14.9 billion in 113 deals in 1H 2023.
This week, FRV Australia, a renewable energy project developer and part of Jameel Energy and the Canadian infrastructure fund OMERS, secured A$1.2 billion (~$0.785 billion) in refinancing for its solar project portfolio, which has a total installed capacity close to 1 GW. The portfolio consists of eight solar projects in operation or under construction.
